A 5 percent increase in income leads to a 10 percent increase in the quantity demanded for a service.This service is a(n)_____ good,and the demand is _____.

Name: A 5 percent increase in income leads to a 10 percent increase in the quantity demanded for a service.This service is a(n)_____ good,and the demand is _____.
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Quizplus · Accepted Answer

A 5 percent increase in income leading to a greater than proportional increase in demand (10 percent) indicates that this is a normal good with elastic demand.

A 5 Percent Increase in Income Leads to a 10